InMode Ltd. (INMD:NAQDAQ), a global provider of innovative medical technologies that only a few days ago completed an initial public stock offering (IPO), reported second quarter earnings for the period ending June 30, 2019. The firm also gained a lot of attention as it issued a separate release announcing the appointment of pop icon Paula Abdul as a brand ambassador.
In the announcement, InMode reported record revenue of $38.8 million in Q2/19, an increase of 55% over Q2/18. Gross margins in Q2/19 improved to 87%, compared to 84% year-over-year. Operating margin for Q2/19 improved to 41%, compared to 31% in Q2/18, and the company reported net income of $15.8 million, or $0.45 per diluted share in Q2/19, compared to $7.6 million or $0.21 per diluted share in Q2/18.
The company reported a total cash position of $82.8 million, including cash and cash equivalents, marketable securities and deposits. This amount excludes the $70 million proceeds raised in InMode's initial public offering.
Moshe Mizrahy, the firm's CEO and chairman stated, "We are pleased with our second quarter results, which are consistent with both our reported expectations and the positive trends we are continuing to see in our business."
The Q2/19 earnings report comes only a few days after the company announced the closing of its initial public offering on August 12, 2019, of 5,000,000 ordinary shares at an initial public offering price of $14.00 per ordinary share. The aggregate gross proceeds, before deducting underwriting discounts and commissions and other offering expenses, to InMode from the offering were approximately $70.0 million. The shares began trading on the Nasdaq Global Select Market on August 8, 2019, under the symbol INMD.
Yesterday, the company proudly announced that Paula Abdul has agreed to serve as a brand ambassador for InMode in order to share her positive experience with the company's BodyTite, FaceTite and Morpheus8 technologies. Paula Abdul is an international pop icon who made her mark in the entertainment industry as an award-winning dancer and choreographer, singer, actress and television personality with six number-one singles on the Billboard Hot 100, Emmy and Grammy awards, and numerous other accolades.
InMode states that its business is a leading global provider of innovative medical technologies. The firm develops, manufactures and markets devices harnessing novel radio-frequency (RF) technology, leveraging its medically accepted, minimally invasive RF technologies to offer a comprehensive line of products across several categories for plastic surgery, gynecology, dermatology, otolaryngology and ophthalmology. Within the global aesthetics market, the company indicates that its products and solutions are primarily designed to address three energy-based treatment categories: face and body contouring, medical aesthetics and women's health.
InMode's shares opened this morning at $17.42 (+$3.42, +24.43%) over yesterday's close of $14.00. Today, shares have traded as high as $17.50 and are currently trading at $16.24 (+$2.24, +16.00%), while the broader market is seeing major losses.[NLINSERT]
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